TNAG-2783-FCO40-4002-UK-business-interests-in-Hong-Kong-Chinese-discrimination-ag-1993 — Page 53

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Mr Winkrem

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CHINESE THREATS TO BILATERAL TRADE?

Hugh L1 Davies

Date: 14 April 1993

Mr Ricketts, HKD

Ms Conroy, ECD (E)

Mr Murray, DTI, OT2/2D Mr Impey, DTI

POSSIBLE EUROPEAN COMMISSION

SUPPORT

see (21

1.

UK

Minister

The Minister will recall that on 18 March, MOFERT

Li Lanqing told a National People's Congress press conference that

if the Governor of Hong Kong stuck to his present position, it

would inevitably damage economic and trade relations between the

and China. On 23 March, Foreign Minister Qian Qichen repeated

the threat, adding that the responsibility for any disruption

would not be with China. There were a number of other similar

hints and we heard of a few, pretty unsubstantiated instances of

British firms being told that thay had lost, OF would lose,

contracts because of the Governor's attitude.

2.

T

*

At the time, we had two approaches from the European

Commission from Mr Simon Nuttal, Asia Director of DGI, and from

Mr Robert Madelin in Leon Brittan's Cabinet - suggesting that, as the Commission has competence in areas of trade policy, it might

raise the issue with the Chinese on our behalf. The Minister saw

FCO telno 190 (A) and queried whether this was the right approach.

Peking, UKREP Brussels and Hong Kong, however, were generally

favour of action along these lines. We undertook to reconsider

the position interdepartmentally in the light of further

developments.

3.

in

Now that the Chinese have agreed to talks over Hong Kong

later this month, they will presumably put on ice their threat to disrupt trade relations - although the issue could surface again if the talks failed to make progress or break down

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